The contract for the construction of the new multi-purpose stadium in Green Point was today awarded to a joint venture of Murray & Roberts and WBHO (Pty) Ltd. The total project cost is R2,85 billion.

The award makes it possible for the contractor to establish the construction site within the next few days. The stadium will be built on a portion of the existing Metropolitan Golf Club on the Green Point Common, close to the Victoria & Alfred Waterfront and Cape Town’s central business district.

The project covers the construction of a 68 000 seat stadium complete with all of its ancillary infrastructure in which to host major sporting and other events including the 2010 Soccer World Cup semi-final.

Cape Town’s Bid Adjudication Committee consisting of senior financial, procurement, legal and technical officials met in open session. The City’s 2010 team assured the Committee that in simplifying the design, making the stadium smaller and saving costs, the scope of the original tender had not been changed, that the stadium still meets FIFA requirements and those attached to the environmental authorization for the site. The long-term sustainability of the stadium is also still intact.

A part of the existing Green Point Stadium on the Common which could not be upgraded will be demolished for use as a construction yard. An athletics track will be re-instated on the Common in conjunction with the proposed development of the Common. The demolition is part of the main contract awarded today. Excavations and the diversion of bulk services such as water and storm water where necessary will be undertaken at the same time after which foundations for the three tier, 68 000 seater stadium will be poured.

The 2010 team’s report to the Committee warned that the current provisions of 10% for escalation and 5% for contingencies within the approved tender price could be exceeded on a project of this size. The City has asked National Treasury on more than one occasion to underwrite escalation in excess of 10%, but no confirmation in this regard has been received. It is now understood that a task team is to be established to advise as to how excess escalation for all host cities is to be managed.Strict design, site and cost management measures will, however, be taken through the employment of a specialist Development Manager. An incentive scheme will be introduced for both the Professional Team and the contractor subject to the works being completed within budget, within programme and to specification

The tender envisaged a completion date of November 2009. Delays in the award of the tender have resulted in a revised completion date of end January 2010. This date does not comply with FIFA and the Organising Committee’s deadline of end October 2009. The contractor has not yet agreed to the earlier completion date as revised detailed drawings after design and cost adjustments are not yet available. The refinements have reduced both the building envelope and complexity of the structure and the City’s professional team is confident that FIFA can be given access to the stadium by end October 2009.